Journal of MDFIRE2024

[wolf]

Your saving rates are super high! Would be interested how you manage to do it.

I posted some of my best-practices earlier in this post https://forum.earlyretirementextreme.co ... 56#p148255
Well, I started to live by Minimalism and Simple Living a decade ago. I have internalized all those principles and as a result I ended at ERE and a high SR. Living by Web-of-Goals is also some of my principles. Minimizing waste and inefficiency etc.

What are your thoughts about the side-income / part-time contracts work in the IT fields? There are reportedly ageism issue where employers prefer younger candidate regardless of experience / value. Setting up own business is one way out of that problem.

I have thought about side-income, e.g. blog, but I decided not to do it. I don't know exactly, but you have to invest a lot of your time to generate some income.
Part-time work could be something for me in my transistion phase from full-time work to RE.
Setting up a business is nothing for me, because I enjoy working at my current job.
So, overall I don't feel any need to change something on my current set-up and Web-of-Goals.

What do you think about side-income / part-time-work / business? Do you want to use it to increase your income?

[meursault]

Part-time work could be something for me in my transistion phase from full-time work to RE.
Setting up a business is nothing for me, because I enjoy working at my current job.
So, overall I don't feel any need to change something on my current set-up and Web-of-Goals.

What do you think about side-income / part-time-work / business? Do you want to use it to increase your income?

I think having cashflows from multiple sources is more resilient. I would opt for multiple flows of small, uncorrelated income sources than one major source (stock dividends etc.). It probably also mean I have money-making skillset so that I don't have to accumulate such large financial asset before FIRE.

The only thing I don't like is being forced to work on more "popular/trendy" stuff of the day just to get money. I am still researching more about these options...

Actually I don't need the RE part of the FIRE, I just want to be FI. Our end goal might differ a bit here.

[wolf]

Hi ERE-folks, it's time for the progress in July. It was a great month overall. I had three weeks off work and got a feeling for Early Retirement, because I treated it as a "simulation". I stayed at home and didn't travel. There were many Lessons Learned. One I'd like to share with you.
For the last several months I had worked on a project and I started to work very early each day. Therefore I used an alarm clock, as usual when working, right. In my vacation I felt how good it is for my health and well-being to get up without an alarm clock. Therefore I thought about it how I could integrate that into my usual work days. Due to flexible working hours and due to the fact, that I get up usually at 6AM, I'm trying to avoid any alarm clock. It's a great feeling so far, getting up without an alarm clock also during the normal business week days. For example today: I got up at 5:45AM just by waking up without an alarm clock, made some green tea, checked the new ERE-posts and now I'm writing my journal.
The thought behind that is, that I want to build my favourite lifestyle right now. I don't want to wait till FIRE. And an alarm clock is a issues for many people. At least many RE people write that it is a great relief not having to get up by an alarm clock. Maybe you have made similiar experience? You are welcome to share your story about an alarm clock with me.

Beside that I was able to save a big portion of my income. Last time I showed some chart, which shows my progress beginning in December 2015 till now. If you like to see it, here is the hyperlink: viewtopic.php?f=9&t=9051#p147562

This month I post just numbers of my KPI's, which are

• Savings Rate --> 84% (12 month rolling average)

• Withdrawal Rate --> 9,6% (12 month rolling average) with Margin of Safety included

• %FI --> 39% = accumulated FI-money compared to FI-goal

• Time to MDFIRE2024 = 89 months (just counting down months from today till end of year 2024

[onewayfamily]

Great work mate!
I love waking up without an alarm clock (it's been a year so I suppose I take it for granted now unfortunately). I wish I could wake up that early though - to get up before around 7am I would still need to use an alarm clock.

[wolf]

Great work mate!

Thank you. Really appreciate it.

I have read "Chop Wood and Carry Water", as I wrote before. One chapter was about the awareness of success and learning.
It is about being aware of small improvements and successes. The book suggests to start writing a daily journal about it.
Therefore I have started two weeks before a daily journal. Since then I write daily a DinA4 paper with success moments, continual improvement ideas, lessons learned and gratitude. I write it with my right hand although I am left-handed. I must say that I really do like this structured daily journal writing for myself. I have discovered also, that I do unconsciously the continual improvement ideas within the next days. That daily journaling is great. I do it in the evening so I can review my day. It has positive effects on my awareness. I can see, because I write about it, that I do make small improvements everyday. It is based on the principle "Chop Wood and Carry Water" each and every day. Great experience and I don't want to miss it anymore.

[Viktor K]

A daily journal is an interesting idea. I track my expenses in a little notepad each day, I might try to write a brief note or two at the bottom of the page each day. Lately, I have been writing my monthly updates in advance, adding to each part, changing, rewriting, and modifying what I say as the month goes along. I've found that keeps me more focused, optimistic, and personally aware of where I'm going and what positive changes I am making. I imagine a daily journal would have a similar if not greater effect.

[wolf]

In the last few weeks I have bought some eBooks from Amazon. They are very good priced (for €uropeians) right now. I bought:
- The Meditations of Marcus Aurelius
- How to Stop Worrying and Start Living by Dale Carnegie
- You Are a Badass: How to Stop Doubting Your Greatness and Start Living an Awesome Life by Jen Sincero
- Mastery by Robert Greene
- Into the Wild by Jon Krakauer
These eBooks will give me quite some material to read through.
I have started with Mastery from Robert Greene, because Jacob said that book and Antifragile and his ERE-books builds the core of the ERE philosophy. Also I startet to read it because it is a perfect match for my last read book: "Chop Wood Carry Water". I am really into processoriented development these days. Doing something every day and train your habits has a high priority these day. For instance I have the following habits and I try to do it each day:
- drink only 4 green teas a day before 12 o clock (because of the cafeine)
- do fitness and/or weigh lifting everyday
- write more than 500 words each morning
- do a structured daily journal in the evening (successes, ideas, lessons learned, gratitude)
- follow the warrior's diet (skip breakfast, start with lunch and eat dinner)
- meditate in the evening before going to bed
- read something inspirational, e.g. a book (see above)
- don't watch/consume/browse news, headlines, ...
- and many more

[TomBombadil]

Concerning your list of books:

In the last few weeks I have bought some eBooks from Amazon. They are very good priced (for €uropeians) right now. I bought:
- The Meditations of Marcus Aurelius
- ...

The Meditations are also available as standard ebook for free (I don't know if you paid anything)
https://standardebooks.org/ebooks/?query=aurelius
if you don't mind reading English books. But concerning your writing capabilities and time you spent here on the forums language should not be an issue. I'm currently reading Walden from standard ebooks. The Meditations are already on my reader, though I did not start yet

[wolf]

The Meditations are also available as standard ebook for free (I don't know if you paid anything)
https://standardebooks.org/ebooks/?query=aurelius

Thank you for the hint. Luckily I haven't paid anything. Amazon does also have free ebooks for the kindle. Anyway, it is always good to know a second source, which is much ERE like.

[wolf]

I have looked for Financial Freedom [FF] definitions.
I have found three different possible formulas to calculate the FF budget.

• FF = ( annual needs + annual wants x 2 ) / SWR

• FF = 40 x annual expenditure

• FF = annual expenditure x 1,3 / SWR

Additionally I add my own definition about FF to calculate the needed budget

• FF = annual expenditure x 2 / SWR

According to theses definitions and assuming a SWR from 3% and regarding my last 12 monthly costs
I need an average FF budget of about 440k€.

Right now my networth is 140k€ (measured by Jacob's ERE standards)

So my progress towards FF is about 32%.
I do also measure my progress towards FI, which is about 40%.

Everything regarding MDFIRE2024 is fine at the moment, but I think about changing my goal name to MDFFRE2024

[wolf]

1) About 2 months ago I started with a daily journal about my (small) moments of successes of the day, lessons learned, gratitude, ideas. My daily journal is therefore structured into four parts. It helps me to stay organized and write it in an structured manner. Therefore I don't get lost in the "way" how to write it and therefore I can completely focus on the experiences, feelings and thoughts. I do write one page (DINA4) each day. It is part of my daily routine and I am very thankful for the insights of it. As I said it began about 2 months ago with this structured daily journal.

2) About 2 weeks ago I also started some kind of reviewing. I try to write >500 words each day about topics I am interested in. I combined my goal to write >500 words with my journal-review. Well, since then I review my journal. I go back exactly 1 month in my daily journal and review what I thought on that day. For example: Today (10.September) I am going to review my journal entry from last month (10.August). I am going to re-read my journal from back then and review what most mattered to me on that day. Then I pick about 1-3 topics I want to write about. I start writing and just write. I don't even count the words, but I am sure that I write more than 500 words about the topics.

3) That journal-review gives me some insights. I can see changes, developments, ... since then. I can see what has changed or what has stayed the same. I can even combine my present thoughts from today with what I wrote about 1 month ago and can generate new ideas. (lateral thinking). My unstructed writing process helps me to get into a "flow state/mode". Ideas come just naturally to my mind when I just write.
What I also understand is, that there can be huge changes only within 1 months. I see differences and the potential that holds each day. If we are able to develop within 30 days, what is then possible within 365 days?

4) Another great benefit I become aware of is that my journal(-review) let me focus on the positive things and moments of life. I am trying to focus and concentrate on the positive aspects of it. I want to outnumber my negative moments with my positive thoughts at least 5:1. Because negative feelings weighs more on us, I find it important to see the many positive (sometimes small) things in life. Each day is precious. Since starting my daily journal (-review) I am aware of that even more than before.

[Rocky]

Hello and thanks for stopping by my journal. Your four-part journal sounds like a useful vehicle for personal growth. Especially the reviewing which is something I have not tried.

I hear you on life being precious. It seems to go by so fast. A journal sounds like a great way to capture those moments.

[wolf]

Hi Folks,

this time I'd like to share some thoughts of the following topics:
1) MDFIRE-Simulation in my 3 week vacation
2) starting a new diet
3) meeting someone

1) MDFIRE-Simulation
One week ago my three week vacation started. I will have another two weeks left. As I already did in July, I use this time off work in order to simulate an MDFIRE-Lifestyle. Therefore I don't travel and stay at home. I'd like to get more insights how a RE-lifestyle feels. Today is my second day without any community or connection to other people. Last week I stayed at my sister's place and visited my parents. Today I gotta say, that being alone all the time is really different than being at works with colleagues. I do feel some loneliness after two days without connecting to other people. From the great book "How to retire happy, wild and free" I have learned that there are three main aspects for retirement: purpose, community and structure. These days all these three aspects are missing in my life. I wake up in my bed and thought: What should I do all day? Usually I go to work on monday mornings. At work I experience community, structure and purpose. My lessons learned here is, that I have to care about those aspects in retirement! But there are not only negative aspects to my MDFIRE-Simulation. I really like the free time and the flexibility to do what I want to do. Having all the freedom to choose from options is great. I can better arrange my plans to circumstances, e.g. weather, ....Let's see how the next two weeks are going to be in my MDFIRE-Simulation-Lifestyle.

2) Starting a new diet
When I have been staying at my sister's place I read the book "How not to die" from Dr. Greger. It is all about minimizing the risks of diseases by eating healthy. Dr. Greger is famouse for his "daily dozen". He also started the website nutruitonfacts.org. If anybody is interested in a wholesome plant-based diet I can strongly recommend reading this book. His "daily dozen" contains:
- beans, lentils, ...
- berries
- other fruits
- cruciferous
- greens
- other vegetables
- flaxseeds
- nuts
- spices
- whole grains
- beverages
- exercice
I found out that the wholesome plant-based diet by Dr. Greger is totally aligned to my ERE-lifestyle and -goals. Again, I can recommend that book, if you want to find out more about reducing the risk of diseases etc.

3) meeting someone
I have met a woman, whom I feel attracted to. We went in the same school and she texted me a few weeks ago. I have met her three times so far. I guess she has a INFP personality. Btw I am INTJ, but trying to develop more into INFJ. Well, talking with her is really great. But as I have read before here in this forum talking about ERE-topics could be difficult. I mentioned "Simple Living" and she just said, that she heard about it once. Although I think that she is not aware of ERE, FIRE, Minimalism, personal finance, her lifestyle is individualistic and frugal. What attracts me is her high level about feelings and intuition in other people. Regarding decision making I guess she is quite the opposite from myself: Thinking versus Feeling. But we do share the same level on intuition. So far she has not seen how I live. She knows that I live carfree. But what will she thinks if she finds out that e.g. I cut my hair by myself, don't use a fridge, safe energy/power extremely, try to reduce waste as much as possible, ... Well, I am really curious what she has to say about my ERE-lifestyle. Either way, I won't mention ERE in particular, because living ERE is not about the money. I figured out that money is "only" a by-product of ERE and a means to an end (satisfied life).

So far, everything is OK.

[fiby41]

I have met a woman, whom I feel attracted to.

Good luck with the woman. I think you are being very self conscious, which is ok. According to Dr Jordan Peterson, and my experience concurs with him-
Men have an image of feminine perfection, in their mind, which is almost divine, that they use to inspire themselves, across cultures. This image of an ideal woman, which is again, all in their head, is a judgemental ideal. Men are terrified of the judgements she can pass.

As you get to know this particular woman, you will learn to dissociate her from the image of divine perfection, in order to build a relationship with her.

But what will she thinks if she finds out that e.g. I cut my hair by myself

If she finds out and objects/comments/disapproves, then you can have your love interest cut your hair for you. That way she'll never have a problem with your haircut when she does it herself.
Example, Forum Fuhrer's gf used to cut his hair.

[Viktor K]

As for the things missing in your ERE-test run, try to develop them now before you're ERE. You have less than 7 years now to do so, but that is plenty of time. Find a daily purpose outside of work, and reach out to communities you may be interested in so that you can have established networks when you quit your job. With these two things already established and your personality type, I think the third concept, structure, will be easy to develop shortly after you quit.

Congratulations on meeting a girl. That too can add a lot to the "community" aspect, in my opinion. A good group of friends and a satisfying relationship may be enough.

Also, if she's the right one, she won't care about your lifestyle choices, but rather she will simply accept them. Whether or not she embraces them, and whether or not you accept/embrace her decision to do so or her decision to not do so, will be on you.

[wolf]

As you get to know this particular woman, you will learn to dissociate her from the image of divine perfection, in order to build a relationship with her.
...then you can have your love interest cut your hair for you. That way she'll never have a problem with your haircut when she does it herself.

Thank you fiby41 for your reply and ideas. I have thought about idealization already and you have confirmed it. This will be a challenge, because I like to see the world in a perfectionistic view. I am trying to see it realistically and keep down my high standards and expectations.

Find a daily purpose outside of work, and reach out to communities you may be interested in so that you can have established networks when you quit your job. With these two things already established and your personality type, I think the third concept, structure, will be easy to develop shortly after you quit.

Also to you Victor K: Thank you for your reply. Structure is the easiest one for me. Community the most difficult one. Purpose comes with doing, IMO. I haven't found something outside of work which gives me deep purpos, but I also haven't looked hard enough for it or haven't tried something like volunteering, ... My work occupies me a lot, so therefore I don't feel that I need something big outside of work. I should probably look for something that gives me a feeling for community AND purpose outside of work. Any recommendations, experiences or ideas?

[fiby41]

- The Meditations of Marcus Aurelius

https://standardebooks.org/ebooks/?query=aurelius
I'm currently reading Walden from standard ebooks. The Meditations are already on my reader, though I did not start yet

Here is the link to ERE book club discussion of Meditations: https://forum.earlyretirementextreme.co ... =13&t=5632

Here is the link to forum thread on Walden:
https://forum.earlyretirementextreme.co ... 1&start=25

It's interesting how different take-aways different people have from reading the same books.

[Viktor K]

You like to hike and mountain bike. How often do you do these things and who do you do them with? In the US, I've always found hikers to be a nice bunch with a good sense of community. Also, I imagine you'll eventually have a long-term relationship which makes a difference. Purpose is much more difficult and more personal, I think. My girlfriend and I talked about it, and we imagined a future you that has a local hiking and biking group of outdoorsy people that meet up on the weekends (since they'd presumably be working lifers), while you train for blended travel/hiking goals like climbing Mount Fuji.

[wolf]

You like to hike and mountain bike. How often do you do these things and who do you do them with? In the US, I've always found hikers to be a nice bunch with a good sense of community. Also, I imagine you'll eventually have a long-term relationship which makes a difference. Purpose is much more difficult and more personal, I think. My girlfriend and I talked about it, and we imagined a future you that has a local hiking and biking group of outdoorsy people that meet up on the weekends (since they'd presumably be working lifers), while you train for blended travel/hiking goals like climbing Mount Fuji.

You do have a good point. Usually I hike and montain bike alone.
But recently I went hiking three times with that girl I mentioned and I totally loved it. I liked being in nature AND having a meaningful conversation at the same time. As you mentioned a hiking group or companions could be also good. I gotta think this through. I have to find ways how I get to know hiking people.
At the same time I do train hiking and set hiking goals. I exercise hiking with weight. My mid-term goal is: Being able to hike about 13 kilometres with 12 kilogramm weight (which is about 20% of my personal weight). I want to achieve this in order to be / stay fit for hiking/trekking vacations.

[wolf]

My Asset Allocation posted here

My overall asset allocation is:
1) Bonds (20%)
2) Equities (60%)
3) Real Assets (20%)

I try to diversify as much as possible and build in many uncorrelated assets.

My second principle is to diversify between regions
50% developed markets
50% emerging markets
I apply this share to bonds and equities, because I think in the long-term emerging markets will have much more influence in the world economy than today. And I live in a developed country (real estate, social security, income by paid job) therefore I want to diversify here as best as possible.

My third principle is to diversify within the equity market, such as:
50% Small and Mid Cap
50% Big Cap

For Real Assets I diversify:
10% basket of commodities
10% precious metal (Gold, Silver, mining companies)

When include my portfolio asset allocation with my total networth assets (real estate, social security, income by paid job) I do get a roughly share of
80% developed markets
20% emerging markets.
If I view my total networth like this, I am satisfied with risks, return, share btw. DM/EM, ...